Marathon Petroleum Stock Intrinsic Value – MARATHON PETROLEUM Reports Q2 FY2023 Earnings Results on August 1 2023
August 9, 2023
🌥️Earnings Overview
On August 1 2023, Marathon Petroleum ($NYSE:MPC) Corporation reported their earnings results for the second quarter of FY2023, which ended on June 30 2023. Total revenue amounted to USD 36.3 billion, a 32.5% decrease compared to the same period in the prior year. Net income was USD 2.2 billion, representing a 62.0% decrease in comparison to the year before.
Price History
The stock opened at the price of $131.8 and was up by 1.4% from the previous closing price of $133.0, closing at $134.9.
In addition, MARATHON PETROLEUM also reported that total sales volumes decreased by 3% from the previous quarter. The company’s CEO expressed optimism about the future of MARATHON PETROLEUM and the oil and gas industry as a whole, citing increased demand for fuel in the US and abroad due to the economic recovery from the pandemic. Going forward, the company plans to invest in new technologies and expand operations to continue growing and meeting customer needs. Overall, the report was positive and investors responded positively to the news as the stock saw an increase in share price. The market analysts were optimistic about the company’s performance and prospects for the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Marathon Petroleum. More…
| Total Revenues | Net Income | Net Margin |
| 156.81k | 12.74k | 7.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Marathon Petroleum. More…
| Operations | Investing | Financing |
| 14.94k | -1.69k | -14.98k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Marathon Petroleum. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 86.44k | 53.87k | 60.61 |
Key Ratios Snapshot
Some of the financial key ratios for Marathon Petroleum are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.3% | 114.5% | 12.3% |
| FCF Margin | ROE | ROA |
| 8.0% | 45.9% | 14.0% |
Analysis – Marathon Petroleum Stock Intrinsic Value
GoodWhale has conducted an in-depth analysis of MARATHON PETROLEUM‘s fundamentals and have determined that the fair value of the stock is around $130.0. To reach this conclusion, we have used our proprietary Valuation Line. Currently, MARATHON PETROLEUM stock is trading at $134.9, which is slightly overvalued by 3.8%. Although there is a slight overvaluation of the stock, investors can still benefit from buying the stock as MARATHON PETROLEUM is a well-established company with solid fundamentals. More…
Peers
Marathon Petroleum Corp is one of the largest oil refining and marketing companies in the United States. Its competitors include Valero Energy Corp, Phillips 66, MPLX LP.
– Valero Energy Corp ($NYSE:VLO)
Valero Energy Corp is a publicly traded company with a market capitalization of over $54 billion as of early 2021. The company is involved in the refining, marketing, and transportation of petroleum products. Valero is one of the largest refiners in the United States with operations in Canada, the Caribbean, the United Kingdom, and Ireland. The company’s return on equity (ROE) was over 37% in 2020.
Valero Energy Corp was founded in 1980 and is headquartered in San Antonio, Texas. The company operates through three segments: Refining, Ethanol, and Power. The Refining segment refines crude oil and other feedstocks into transportation fuels, including gasoline, jet fuel, diesel fuel, and propane. The Ethanol segment produces and sells ethanol and distillers grains. The Power segment generates and sells electricity and steam.
– Phillips 66 ($NYSE:PSX)
Phillips 66 is a holding company that owns and operates a diversified portfolio of midstream, chemicals, refining, and marketing businesses. Its midstream segment gathers, processes, transports, stores, and markets crude oil and refined products. The chemicals segment manufactures and markets petrochemicals and plastics. The refining segment refines crude oil and other feedstocks into petroleum products. The marketing segment buys, sells, and transports crude oil, refined products, natural gas, and power.
– MPLX LP ($NYSE:MPLX)
MPLX LP is a publicly traded master limited partnership that owns and operates midstream energy infrastructure assets in the United States. The company’s assets include a network of crude oil and refined product pipelines, storage facilities, and terminals. MPLX LP is headquartered in Findlay, Ohio.
MPLX LP has a market cap of $34.05 billion as of 2022. The company has a return on equity of 20.4%. MPLX LP’s assets include a network of crude oil and refined product pipelines, storage facilities, and terminals.
Summary
MARATHON PETROLEUM reported its second quarter FY2023 results on August 1 2023, which showed total revenue of USD 36.3 billion, a decrease of 32.5% compared to the same period the prior year. Net income was USD 2.2 billion, 62.0% lower than the previous year. This suggests that the company is facing difficult conditions and investors should exercise caution.
In light of the drop in earnings, it may be prudent to wait for signs of a turnaround before committing significant resources to MARATHON PETROLEUM shares. Analysts will be closely watching the company’s performance in the coming quarters to assess the financial health of the business.
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